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Click here to download the SOCIAL_HOUSING_CROSSWORD_PUZZLE.pdf

The future of social housing was prudently addressed, following a riveting conversation held by Theresa Mays former chief of staff Nick Timothy at one of our own board awaydays, back in January.

Many believe that social housing is nearing the bottom of the agenda when it comes to the implications of Brexit and is being heavily overlooked.

Arguable, the main issue that the social housing sector is going to face is the logistical changes to supply chains. With materials like timber being heavily imported from the EU, many merchants have already begun contingency planning to maintain their sustainability, and have adopted the approach of stockpiling materials; however, it’s a very temporary solution

The overcomplicating of importing materials is set to have some implications on the affordability of social homes, whether this is going to be for the good or bad of renters in the UK.

But the question is, does anyone know what they are doing? Planning for the unknown is an impossible feat in all walks of life, let alone when looking to mitigate the effects of Brexit on an entire industry.

The potential knock-on effects are endless with the immediate ones possibly the most damaging. Will we begin seeing more or less jobs in the construction industry? Half of construction workers in London come from the EU and many have already gone back to avoid being ‘stuck’.

The effects that deal or no deal Brexit could be endless from temporary purchasing alternative materials to a complete logistical change, steering away from current just in time solutions.

Going from a blanket agreement to, well, who knows what, is going to be a huge change regardless of the specifics and the social housing market is inevitably going to learn to adapt no matter what comes its way; Deal or No Deal is just the beginning of something bigger.

With every future deal coming from UK Parliament, surely our government will do what is best for UK citizens? It is no secret that the UK has been in a housing crisis for some time now with the publication of reports like the Shelter’s “vision for social housing”.

Although the UK is going Brexit crazy, there’s no need to panic. CHIC has been actively collaborating with its members / suppliers to gather intel on what is the best course of action to mitigate the amount of disruption to the supply chain. 95% of Manufacturers and Distributors have already plans in place to mitigate for a No deal vote with the large majority being determined as low risk. (Testimonial from a supplier)

CHIC has engaged with it’s supply chain to ensure that members have contingencies in place for every aspect of property maintenance requirements.

CHIC’s Merchant Services Manager (maybe change it to Supply chain manager) is of the opinion that: “The worst thing that we in the social housing industry can do right now, is to put our heads in the sand and hope that this storm will pass us by. The first thing that will be affected will be supply chains, as we see in other sectors such as the automotive industry. Arguably if housing associations engage with purchasing groups, in respect of their suppliers, trends will be noticeable which means that steps can be taken to mitigate negative effects.”

As rightly pointed out purchasing groups such as CHIC, are better positioned to notice trends in the market that individual housing associations cannot see, and this is purely down to the number of suppliers each engages. Having a pool of suppliers providing the same type of service, normally via a framework, will allow members that purchase through that group a better understanding of where the market is going.

In these trialling times, co-operation is key, and instead of we can do it better, we need to do it better together.

The question is then, what has your association done to ensure that services will not drop.

Quote from Bournville to come: - need to chase giles again today.

If you are worried about the Brexit impact on your organisation, please give us a call.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Procurement Act Reforms – FrameworksUnder the new Procurement Act 2023, the implementation and award of Frameworks changes from 28th October, alongside a change to Dynamic Markets which will replace Dynamic Purchasing Systems (DPS).
  FrameworksSection 45 of the new Procurement Act defines a Framework as a ‘contract between a contracting authority and one or more suppliers that provides for the future award of contracts by a contracting authority to the supplier or suppliers’ and must include the following information:

-   A description of goods, services or works to be provided under contracts awarded in accordance with the Framework;-  The price payable or mechanism for determining the price payable;
-  The estimated value of the Framework;
-  The selection process for awarding onto the Framework;
-  The Framework term;
-  The contracting authorities entitled to award public contracts under the Framework;
-  Whether the Framework is awarded under an Open Framework. Closed and Open FrameworksCurrently, a Framework runs for a duration of four years (this can be longer in certain situations and sectors) and once awarded, the suppliers are awarded a place on the Framework for the duration, unless they become excludable during the term, and the Framework cannot be reopened. Under the new act, this ‘closed’ Framework approach is still an option.

 

 

 

 

 

 

 

 

 

 

 

What Exactly Is MMC and What Does It Entail?  MMC encompasses seven categories of construction, primarily defined by their specific methods. These include fully modular housing ‘units’ manufactured in a factory and frame and panel systems made of timber or metal, which are produced in a factory and then transported to the construction site for assembly. Others includes fitted room modules (kitchens and bathrooms) and pre-manufactured components. 

What Are the Main Issues With MMC To understand the constraints of MMC we need to understand the issues: 1. Factory built fully modular is not suitable for all sites and is more suited to standard house types for low rise housing. 2. Difficult to reach or narrow access sites do not work for factory built units, as the modules are delivered by large trucks and need mobile cranes to position them. 3. Factory manufacturing is only financially viable with high volumes – so, a sustained order book is key. Producing just a few houses is not cost effective for a production line, particularly if there are multiple design variances. 4. MMC is fundamentally a manufacturing process, not construction. This distinction is often overlooked, but needs to be understood at the very beginning of the development process, to influence design and programming. 5. The funding mechanisms for MMC differ from traditional construction. Materials need to be paid for at the point of supply, making funders nervous since this upfront payment can be viewed as ‘at risk’, when in another organisation’s factory. While vesting agreements can mitigate risk, they still demand cash flow. 6. Many manufacturers fail due to insufficient demand for their products. The slow planning system and cyclical nature of housing confidence do nothing to help generate a sustained order book. 7. The main survivors in the MMC industry are larger manufacturers offering diverse products across multiple sectors, including education, hotel accommodation and housing. Frame and panel manufacturers are also thriving because their construction methods closely resemble traditional construction, but with added benefits – and they can service higher building designs, with more design repetition.  8. Benefits include rapid frame erection and weatherproofing, allowing buildings to become watertight within days. This enables internal fit-out to progress simultaneously with external work. For metal frame and panel manufacturers, the entire external fabric, including windows and doors, is completed in the factory, resulting in quicker build programmes and reduced exposure to weather-related delays. 

Conclusion There is a place for MMC in housing, but it will not become mainstream in fully modular buildings until the market fully understands its processes and benefits. The immediate future of MMC lies in frame and panel construction, which can easily be substituted for traditional building methods and is already widely used. MMC manufacturers are already meeting building regulation Part L, meaning their build costs will not increase as much as those for traditional construction. As energy efficiency standards for new homes continue to evolve, MMC offers a viable path forward. If we are to solve the housing crisis, capacity needs to increase in a market with significant pressures on construction skills. MMC can deliver, but for it to do so the supply of land and planning system need a radical overhaul, to generate sustained order books. The new government have provided this overhaul, so lets hope they deliver.  

How CHIC can help After thorough consultation with our members and supply chain partners, CHIC understood that the newbuild development market isn’t one size fits all.  Therefore, our recently launched Newbuild Development Framework provides a comprehensive solution to deliver all types of development related works and services from small infill and garage sites to large estate regeneration projects including newbuild, refurbishment/retrofit and cross subsidy housing for sale. It also provides MMC solutions including fully modular, frame & panel and turnkey options so that we can be progressive as a sector, but also take into consideration current behaviors and needs. Find out more here: https://www.chicltd.co.uk/services/frameworks/newbuild/ 

UK construction activity grew for the fourth month in a row in June, with the S&P Global UK Construction Purchase Manager’s Index (PMI) hitting 52.2. This growth was mainly driven by commercial work and civil engineering, while housing activity declined after a brief rise in May. Despite this, construction companies increased hiring, achieving the highest job creation rate since August 2023.

Experts attribute the growth to easing inflation and better supply chain conditions. Although election uncertainty slowed new order growth, confidence remains high for the coming year. Industry leaders expect continued momentum, especially in the commercial sector, as material shortages and labour market challenges persist.

Read More

 

HSE highlights “significant” rise in construction deaths

 

At the end of 2023/24, we delivered 39.5 days of volunteered time, totalling a fantastic 278 hours, where we have been involved with a wide range of projects. This has had a positive impact on the individuals and communities we have supported. Some of the projects we have partnered with include:

-   Let’s Feed Brum – A charity set up to support people who are homeless, where we have supported their food and supplies services by handing our provisions at Birmingham Cathedral. www.letsfeedbrum.com -   Goscote Community Garden – tidying and planting of a garden in Walsall to create a decent area for local people to enjoy. www.goscotegreenacres.co.uk-   Delivering training sessions to a range of sports clubs.-   Reading to the elderly in several care homes. -   Supporting CUBS with skills building and challenge exercises-   Committee and Board member support for a range of charities and community groups.-   Trustee volunteer support for an Almshouse Charity-   Supporting Year 9 school students with careers advice.-   Running workshops and training for young people in event/music management and production through JAMM (Johnny Alfrey Memorial Music).

The CHIC team was really pleased to be able to give back to community initiatives and we look to build on this again in this coming year!